Ex Google CEO: AI Can Create Deadly Viruses! If We See This, We Must Turn Off AI!

Here are the top 10 key takeaways from former Google CEO Eric Schmidt's discussion on AI, innovation, and the future of technology from his appearance on "The Diary of A CEO" podcast.

1. Risk taking is essential for entrepreneurial success

Eric Schmidt emphasizes that taking calculated risks is fundamental to entrepreneurial success. He points to Elon Musk as an example of someone who excels at taking huge risks and failing fast. This approach allows entrepreneurs to learn quickly and pivot when necessary.

The concept of fast failure is particularly important because it enables companies to discover what works and what doesn't without wasting excessive time or resources. Schmidt believes that if you build the right product, customers will naturally come, but there's a race to get there first since early market entrants often capture the most value and profit.

2. The 70-20-10 rule for innovation and resource allocation

At Google, Schmidt implemented the 70-20-10 rule for resource allocation, which he credits with generating billions in additional profits. This approach dictates that 70% of resources go to core business (like search and ads at Google), 20% to adjacent businesses, and 10% to completely new ideas.

This structured approach to innovation allows companies to maintain their current success while simultaneously exploring new opportunities. Schmidt highlights how Google's experimental division, Google X, created Google Brain (an early machine learning architecture) with just 10-15 people, which eventually generated tens of billions in profits. This example demonstrates how a relatively small investment in innovation can yield tremendous returns.

3. AI integration is now essential for business survival

Schmidt issues a stark warning that businesses not integrating AI into every aspect of their operations will struggle to survive. He believes AI represents a fundamental shift in how computing works, moving from analytical programming to systems that learn and discover answers.

This transition means companies must adopt AI not just as a feature but as a core component of their strategy and operations. The capabilities of AI are expanding rapidly, from language translation to predicting sequences in biology and determining robotic actions. Schmidt suggests that future successful businesses will all have AI at their core, regardless of their industry.

4. Critical thinking skills are more important than ever

In an age of misinformation and AI-generated content, Schmidt emphasizes the importance of developing analytical critical thinking skills. He defines critical thinking as the ability to distinguish between marketing (or misinformation) and factual arguments.

Due to social media algorithms and confirmation bias, people often find themselves in information bubbles that reinforce existing beliefs. Schmidt encourages verifying assertions rather than accepting them at face value. He argues that society cannot function properly without people operating on basic facts and suggests that those unable to distinguish between truth and falsehood should refrain from spreading information.

5. Technical culture drives innovation and product excellence

When building a great company, Schmidt advocates for creating a technical culture that prioritizes product excellence. He suggests companies should employ more technical people and fewer non-technical staff, arguing that if you build the right product, customers will naturally come.

A strong technical culture focuses on getting products to work effectively rather than just marketing inferior offerings. Schmidt references his experience at Google, where the emphasis was on creating products that genuinely worked for users. This approach stands in contrast to companies that prioritize sales or marketing over technical excellence.

6. Founders need diva-like vision to drive transformation

Schmidt distinguishes between two types of leaders: "divas" (like Steve Jobs) who drive transformation through strong vision and conviction, and "naves" who prioritize personal gain over collective success. He suggests aligning with brilliant, visionary leaders is crucial for building truly innovative companies.

Finding someone who is smarter, faster, and more innovative than yourself can be a key to success. These visionary leaders are often difficult to work with but have the ability to see possibilities others miss. Schmidt acknowledges that these exceptional founders are rare but essential for creating breakthrough innovations that change industries.

7. AI's advancement poses serious risks that require safeguards

While optimistic about AI's potential, Schmidt acknowledges serious risks including enhanced cyber attacks, biological threats, misinformation, and new forms of warfare. He notes that raw AI models (before safety measures are applied) can develop capabilities for "day zero" attacks and other dangerous applications.

What particularly concerns Schmidt is that AI systems will learn things their creators don't know they've learned, making comprehensive safety testing difficult. This is why he believes governments must establish guardrails for AI development. Unusually for the tech industry, AI developers themselves have sought government regulation because they recognize the potential dangers posed by the technology they're creating.

8. AI will transform warfare through autonomous systems

Schmidt believes AI will fundamentally change warfare, moving from traditional human-centered combat to remote, networked operations using autonomous systems. The Ukraine-Russia conflict already demonstrates this shift, with drones playing an increasingly central role on the battlefield.

The economics of warfare are changing dramatically, with inexpensive drones capable of destroying much more expensive traditional equipment like tanks. This creates new challenges for military strategists and defense planning. Schmidt predicts conflict will increasingly involve drone-versus-drone combat, with AI systems playing a crucial role in military decision-making.

9. Job displacement will occur but total employment will increase

While acknowledging AI will cause significant job displacement, Schmidt believes it will ultimately create more jobs, not fewer. He points to demographic challenges in developed countries, including aging populations and declining birth rates, creating a need for increased productivity among younger workers.

AI can help address this productivity gap by augmenting human capabilities. Schmidt suggests that throughout history, technological revolutions have eliminated certain jobs but created new opportunities. He believes humans will continue to value human connection and achievement, pointing to examples like sports and entertainment where human performance remains central despite technological alternatives.

10. Human values and judgment remain irreplaceable

Despite AI's growing capabilities, Schmidt maintains that human values, judgment, and connection will remain essential. He argues that while AI may reach extraordinary cognitive abilities, it lacks inherent human values unless specifically programmed with them.

For decisions involving moral judgments or human welfare, Schmidt would trust human judgment over AI, even if the AI had vastly superior processing capabilities. He believes the core aspects of humanity—morality, judgment, belief, and charisma—cannot be replaced by artificial systems. Schmidt envisions AI as an assistant that enhances human capabilities rather than a replacement for human decision-making in areas requiring ethical considerations.